Opening a weed bar or cannabis club is a great way to enter the marijuana industry. However, there are a few things you need to know before you get started.
Here are the ten steps you can take to get started on building your very own weed bar or cannabis club business.
10 Steps to Launching a New Weed Bar or Cannabis Club Business
1. Choose Your Type of Weed Bar or Cannabis Club Business
The first step in launching a weed bar or cannabis club business is to identify the type of business you want to launch. You might choose from the following types among others:
Weed bar – A weed bar is a social space where people can purchase and consume marijuana. These businesses are typically located in areas with high foot traffic, near college campuses or popular tourist destinations.
Cannabis club – A cannabis club is a private membership-based club that provides members with access to marijuana. These businesses are often located in areas with less foot traffic but may offer additional services, such as educational classes or events.
2. Name Your Weed Bar or Cannabis Club
Give your weed bar or cannabis club business an identity so people will consider it a well-known and respected brand. You can take the name of your weed bar or cannabis club business from your industry, focus on a geographical location, or use your own name among other options.
The main goal for naming your weed bar or cannabis club business is to make it sound appealing and trustworthy so that potential customers will want to visit your business.
Avoid using names that suggest illegal activity or could turn off potential customers, such as “The High Life” or “Dope Den.”
3. Determine Your Weed Bar or Cannabis Club Business Model
There are several possible types of business models for a weed bar or cannabis club business including:
- On-site consumption – In this type of business, customers consume marijuana on the premises. This model is often used for weed bars, though some cannabis clubs may also offer on-site consumption.
- Private membership – In this type of business, customers must become members in order to purchase and consume marijuana. This model is typically used for cannabis clubs.
- Hybrid – In this type of business, customers can purchase and consume marijuana both on-site and off-site. This model is often used for businesses that offer both weed bar and cannabis club services.
No matter which model you choose, ensure that it aligns with your business goals and the products you offer.
4. Choose a Legal Form for Your Business
By incorporating your weed bar or cannabis club business, you will limit your liability. You can incorporate as a Limited Liability Company (LLC), a C Corporation (C-Corp), or an S Corporation (S-Corp). Or you can operate as a sole proprietorship.
The business structure you choose for your weed bar or cannabis club business will determine the amount of taxes you pay and which state or federal tax forms you need to file.
Read our article comparing the most common weed bar or cannabis club business structures.
5. Write a Weed Bar or Cannabis Club Business Plan
All weed bar or cannabis club business owners should develop a business plan.
A business plan is a document that outlines the goals, strategies, and operations of a business. It can be used to secure funding from investors or lenders, as well as to guide the day-to-day operations of the business. The business plan should include information on the company’s products or services, market analysis, financial projections, and management team among other things.
When developing your weed bar or cannabis club business plan and strategy, you should think about the following questions your customers might have:
- What types of products or services do you offer?
- Where is your business located?
- Do I need to be a member to purchase and consume marijuana?
- Is consumption of marijuana allowed on the premises?
- Can I smoke marijuana at your business?
- How much does it cost to become a member?
- What are the membership benefits?
- Do you offer any discounts or promotions?
- What are your hours of operation?
- Do you have a dress code?
- Are there any age restrictions?
- Do you serve food and drinks?
- What is the atmosphere like at your business?
- Do you have a website or social media presence?
- How can I contact you if I have questions?
Answering these questions will help you develop a clear and concise business plan that will be useful for you and your customers.
Read our article about how to write a weed bar or cannabis club business plan.
6. Apply for the Necessary Permits and Licenses
You may need to obtain required licenses and permits before launching your weed bar or cannabis club business.
You must also register your weed bar or cannabis club business as a legal entity with the state where you plan to do business. You can simply file an online form through your Secretary of State website.
Registering with the federal government is also essential so you can properly pay taxes for your business. You will also need an Employer Identification Number (EIN), which you can apply for at the IRS website, if you plan to hire employees.
Read our article about obtaining the proper weed bar or cannabis club business licenses.
7. Determine Your Budget & Apply for Funding as Needed
In developing your weed bar or cannabis club business plan, you will figure out how much funding you need to start and grow your business.
If you have funds to invest in your weed bar or cannabis club business, you may consider taking advantage of that. In addition to your personal funds, other forms of potential funding for your weed bar or cannabis club business include traditional bank loans, SBA loans, credit cards, angel investors and family and friends.
Read our article about the costs associated with starting a weed bar or cannabis club business to help you determine if funding is needed.
Read our article about how to fund your weed bar or cannabis club business.
8. Get the Technology & Software Needed to Run Your Business Efficiently
When you start your weed bar or cannabis club business, it’s essential to have the right technology in place to maximize efficiency. You need a computer with Internet access and accounting software for tracking expenses and revenues.
You may also want to invest in point-of-sale (POS) software to streamline transactions and customer relationship management (CRM) software to better manage your clientele. Depending on the size of your business, you may also need additional hardware like printers, scanners and barcode readers.
Read our article about the technology and software you need to run a weed bar or cannabis club business.
9. Market Your Weed Bar or Cannabis Club Business to Potential Customers
Before selling your products, you must let the world know you exist. The first step is to create a website so people can learn more about your products and how they benefit them.
After you launch your website, start promoting it through social media channels like Facebook, LinkedIn and Twitter. Also consider networking with other people in the weed bar or cannabis club industry through social media and blogs so they can help share your business.
You also need to start gathering the materials needed to execute on your promotions strategy, which is your strategy for attracting new customers. Weed bar or cannabis club businesses should consider the following promotional strategies for which you should start getting prepared:
- Host events that allow people to sample products and learn more about the benefits of cannabis.
- Offer free consultations with a cannabis expert to help people learn about the different strains and products available.
- Develop a loyalty program that rewards customers for their patronage.
- Give out free samples to people who are interested in trying your products.
- Offer discounts and coupons to first-time customers.
Read our article about how to market your weed bar or cannabis club business for more tips.
10. Get New Customers & Grow Your Business
When you promote your products, you’ll start to get interest from potential customers.
Make sure you’re ready to serve these customers. Also, be sure to establish systems to ensure consistency and reduce costs. And be sure to find and train the right people to help you grow your weed bar or cannabis club business.
Read our article about how to effectively grow your weed bar or cannabis club business to learn more.
Starting a Weed Bar or Cannabis Club Business FAQs
Why Start a Weed Bar or Cannabis Club Business?
The weed bar or cannabis club industry is growing rapidly as more and more states legalize marijuana for medicinal and recreational use. This presents a unique opportunity for entrepreneurs to start a business in this emerging industry.
How Can I Market a Weed Bar or Cannabis Club Business Online?
There are a number of ways to market a weed bar or cannabis club business online, including through social media, networking, events and promotions. You can also market your business through your website and by developing relationships with other businesses in the industry.
What are Some Tips for Starting a Weed Bar or Cannabis Club Business?
Here are some tips for starting a weed bar or cannabis club business:
- Research the market. Understand the industry, the products you’ll be selling, the target market you’re targeting and the local competition.
- Develop a solid business plan. This will be your roadmap for success.
- Get the right technology and software in place. This will help you run your business efficiently.
- Promote your business through social media, networking, events and promotions.
- Market your business through your website and by developing relationships with other businesses in the industry.
- Train your staff on the products you’re selling and the industry.
- Be prepared to serve your customers. Establish systems to ensure consistency and reduce costs.
- Find and train the right people to help you grow your business.
- Monitor your progress and make adjustments as needed.
Where Can I Find a Simple Checklist for Starting a Weed Bar or Cannabis Club Business?
A simple checklist to use when starting a weed bar or cannabis club business is as follows:
- Choose Your Type of Weed Bar or Cannabis Club: This should be based on what you are best at and how much experience you have. Remember to keep your interests, skills, and experience in mind at all times.
- Name Your Weed Bar or Cannabis Club Business: This should be done with care, as your brand is important for attracting the right customers. A simple, memorable name will go a long way.
- Choose a Legal Form for Your Business: Whether you choose to become a sole proprietorship, partnership, LLC, corporation or another option will depend on your business. Ensure that you are aware of all the implications of each type.
- Determine Your Weed Bar or Cannabis Club Business Model: Determine how your business will make money. Will you sell products, services, or a combination of both?
- Write a Weed Bar or Cannabis Club Business Plan: Your business plan will also help you determine what your start-up costs will be and will provide a roadmap with which you can launch and grow.
- Apply for the Necessary Permits and Licenses: In most locations you will be required to apply for a business license and/or permits before you can begin operations.
- Determine Your Budget & Apply for Funding as Needed: You will need to know how much money you have to spend on all of your business-related expenses before opening any doors. If needed, apply for a small business loan or other funding options.
- Get the Technology & Software Needed to Run Your Business Efficiently: You need to have the right tools in place to succeed. Implement software that will help you manage your time, contacts, and business operations in general.
- Market Your Weed Bar or Cannabis Club Business to Potential Customers: A solid marketing plan will be crucial to your success. It should focus on attracting the right customers so that you can provide them with the products they truly need.
- Get Customers & Grow Your Business: Once you have a solid marketing plan, it's time to actively pursue and secure those who could benefit the most from your products.
Summary
Opening a weed bar or cannabis club can be a great business opportunity for entrepreneurs with the right skills and experience. By following the steps outlined in this article, you can increase your chances of success. Remember to develop a solid business plan and promote your business through social media and other channels. With the right tools and strategies in place, you can grow your business and achieve success.